Heavy discount settles unchanged

The differential on Canadian heavy crude against the North American benchmark settled unchanged on Wednesday:* Western Canada Select (WCS) heavy blend crude for September delivery in Hardisty, Alberta, settled at $12.90 per barrel below West Texas Intermediate (WTI) oil, according to Net Energy Exchange, matching Tuesday’s settled price.

* Brisk rail movement and government limits on production are keeping the differential tight, a Calgary-based industry source said.

* Western Canadian crude oil inventories fell in July to their lowest level in nearly two years, energy information provider Genscape said on Wednesday.

* The Alberta provincial government ordered curtailments in January but has gradually reduced them since, including for September.

* Light synthetic crude from the oil sands for September delivery traded at $1.45 a barrel over WTI, with the premium shrinking from Tuesday’s settle of $2.25 per barrel over the benchmark.

* Oil prices tumbled more than 4.5% to a seven-month low, extending recent heavy losses following a surprise build in U.S. crude stockpiles and fears that demand will shrink due to Washington’s escalating trade war with Beijing.